The hectic lifestyle that we are living these days, often lead us to forgetting things. Small things like toothpaste, shaving cream groceries often slip out of our mind. We often wish for a technology that could remember all these for us. This wish is being fulfilled by Gurgoan based startup of grocery Satvacart. It is hardly one year old and Satvacart announced level break even. This startup could actually a thing or two about business to other big e-grocers. This achievement came through when other noted grocery startups like Peppertap and Grofers are laying off staff and retreating.
Satvacart started in 2014 and is presently delivering 4000 products to 7000 customers every month. It presently operates only in Gurgoan and is on steady expansion. According to Rahul a computer graduate from IIT- BHU and an MBA and owner of Satvacart, e-grocery is the model that should not expanded rapidly but won city by city. WebVan another e-grocery retailer expanded rapidly in 26 cities but went bankrupt. Similarly Gofers had to shut down in nine cities because it could not keep pace with rapid expanding business. Rahul believes that expansion scale is presided over by overall profitability and scales. When asked why the large Delhi marked is not noticed, Rahul said that they never planned small and would expand cautiously and Gurgoan itself is market of US$523 million.
Satvacart caters to both unscheduled and scheduled deliveries but it focuses seriously on reaching the groceries to customers before they run out. This built the trust and led to pre-paid subscriptions. While weekly subscriptions enabled the first time users to try, six months old users can completely forgetabout essentials. Within forty five days the company sold seven hundred subscriptions. Cash flow improved significantly by Prepaid model. One route to its success is delivering perishables like eggs and veggies within twenty four hours of getting them from farms. Another thing is making customer happy with returns no questions asked. All these led Satvacart to great success.